I might recommend calling the HOA and double checking that they indeed require this process and that they are currently processing the paperwork for the property you are interested in. 

Your equity is decent, but not like you have doubled your money (yet).

One large open concept kitchen/living room with two bedrooms. 

Comps in the area are double the price, so there is room there.

That is especially true with the tax law change that went into effect this year; the standard deduction nearly doubled, so the taxes you save by itemizing might be much less than they were in the past (in other words, because you are getting a larger benefit through the larger standard deduction the "cost" of not having the mortgage interest deduction might be less).I can see an argument for there being better uses for your money than to pay off a mortgage with a 5.5% interest rate (if you can make an investment that pays at least 6% for example), but if your quality of life will improve because you paid off your debt and are now "financially independent" then that is what you should do.

Double check the potential financing.Most everything else looks good.

There is a value add available by converting the one bedrooms into two with permits.

Ive received ZERO responses , Its almost like my mailings never really get shipped out but Ive double checked with people in my office and it works for them.

I’m open to all suggestions and opinions.Townhouse 1200sq 2 bedroom 1.5 bath with a bonus bedroom or office in the basement.Purchase price: $32,000($24,000 left on mortgage).

Also, the project we are investigating will be a decent size one to two bedrooms just to test out the water.